Lucinda Creighton (Dublin South East, Fine Gael)
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Question 8: To ask the Minister for the Environment, Heritage and Local Government his views on the conduct of the Dublin Docklands Development Authority regarding the Irish Glass Bottle site; and if he will make a statement on the matter. [18179/09]

John Gormley (Dublin South East, Green Party)
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Since its establishment in 1997, the Dublin Docklands Development Authority, which operates as a commercial entity and is funded entirely from its own resources, has engaged in the purchase, management, development and sale of lands in the Docklands area.

The authority, through its involvement in a joint venture company, Becbay Ltd., made a significant investment in the acquisition of the old Irish Glass Bottle Company, IGBC, site in Poolbeg.

I understand the authority took the view that the IGBC site was very significant in terms of the regeneration of the Poolbeg peninsula and that the manner in which this site was developed would set the tone for remaining development in the area. Accordingly, it decided to secure an interest in the site to achieve, in full measure, its overall objectives for the Poolbeg area as set out in its master plan.

This is regarded by the authority as a long-term investment. It is anticipated that the development of the Poolbeg peninsula will take place over five to ten years. Previously, the authority has been very successfully involved in extensions to the Irish Financial Services Centre area and the redevelopment of the former Bord Gáis site at Grand Canal harbour.

Lucinda Creighton (Dublin South East, Fine Gael)
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Significant concerns have arisen about the way this deal was originally arrived at and how it has been conducted over a period, particularly given that the payment of the interest on the loan has effectively stopped. It raises questions about the liquidity of the Dublin Docklands Development Authority. The fundamental question that merits further investigation, and on which I hope the Minister agrees with me, is that the initial sum paid for the site was €411 million. That was, at the very least, €42 million more than the highest valuation of the site. It beggars belief that a public body, which essentially is what the Dublin Docklands Development Authority is, could justify that kind of expenditure and consider it in any way feasible. The site is now devalued at a minimum by 60%; that is probably a conservative estimate. Some valuers now value the IGBC site at €90 million. The problem is that with the establishment of the National Assets Management Agency and because Bernard McNamara and the other investors have essentially washed their hands of it in terms of paying the interest on the loan, the taxpayer has been lumped with paying the tab.

Does the Minister plan to review the ethical guidelines for the operation of the Dublin Docklands Development Authority? We saw a huge conflict of interest in terms of directors of Anglo Irish Bank, directors of the board of the Dublin Docklands Development Authority and the sellers of the IGBC site to the Becbay Ltd. consortium, many of whom had business interests with existing directors on the DDDA at the time. Does the Minister support the call from the Oireachtas committee for the Comptroller and Auditor General to investigate not just the corporate governance aspect, but the specific property deals over which there are major question marks? Will the Minister give a commitment, as Minister for the Environment, Heritage and Local Government, that he will not sign the development plan for the Poolbeg peninsula because that is linked to this issue? Ultimately, it will be in the Minister's hands. The deadline for submissions is this week but it is the Minister's call. He has the power not to sign the plan.

John Gormley (Dublin South East, Green Party)
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The Deputy's essential question is whether it merits further investigation. The answer is "Yes". That is one of the primary reasons I appointed someone who is an expert in corporate governance and who has great expertise in all of these areas, Professor Niamh Brennan, who will be assiduous in examining all of these matters. I agree we must examine them in great detail. Again, I am very familiar with this area, which is close to where I live.

On the Deputy's second question, I welcome the fact that the matter has been referred to the Comptroller and Auditor General and look forward to any findings that emerge from that process because we must have public confidence in this body. It is important to record also, lest we give the wrong impression, that the Dublin Docklands Development Authority has done very good work. The Deputy's colleague, Deputy Phil Hogan, who is a member of the particular committee, which I understand visited the area, said that the area in general had made massive strides when one considers the level of unemployment in the area years ago. He said it was a map similar to many other places throughout the country and that there was a blight there. I recall what the area was like before it was developed. The Dublin Docklands Development Authority has made tremendous strides but that cannot take away from the fact that this particular acquisition must be examined in detail.

Lucinda Creighton (Dublin South East, Fine Gael)
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The Minister did not answer my question on whether he will sign an order for the development to go ahead. I raised this matter on the Adjournment but unfortunately the Minister was not present in the Chamber. I welcome the appointment of Professor Niamh Brennan. She is a person of integrity but it is not feasible that she is in a position as head of the board of the DDDA to conduct an independent inquiry. That would be a bizarre situation. It would be worthwhile for the Minister to consider an independent inquiry.

Joanna Tuffy (Dublin Mid West, Labour)
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First, the Minister mentioned an investigation. Does he know when that investigation will be completed? Second, I was watching a news report the other day about a conflict of interest being raised regarding the Dublin Docklands Development Authority. What is the Minister's view on that issue?

Terence Flanagan (Dublin North East, Fine Gael)
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The Dublin Docklands Development Authority is nothing but a quango. Does the Minister agree with the Fine Gael view that Dublin City Council should ultimately be responsible for that area and that this quango should be abolished?

John Gormley (Dublin South East, Green Party)
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It is far too early to come to such a judgment. We must await the outcome of these inquiries.

In reply to Deputy Tuffy, the Office of the Comptroller and Auditor General is an independent body. No Minister has, or should have, any influence on it. It will come to its own conclusions. It will inquire into whether the matter merits investigation. However, I welcome the fact that the matter has been referred to it.

On any planning matters, all of those issues must be properly scrutinised, when sensible decision can be made.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Approximately four minutes remains and we will try to get through Question No. 9.